16.1 C

NARCL makes offers to acquire Jaypee Infratech debt held by Public Banks

Must read

State-owned that gave loans to will be able to recover their money next month. However, 24,000 homeowners, owners of fixed deposits, and private lenders will have to wait until the bankruptcy court endorse the resolution plan of the winning bidder Suraksha Group, reported the Economic Times.

This is due to the government-sponsored National Asset Reconstruction Company’s (NARCL) pledge to only acquire loans that are currently held by (PSB).

Sixty-two per cent of the recognised claims against the distressed real estate developer are constituted of homebuyers, owners of fixed deposits, and private .

A Swiss challenge auction has been launched in response to NARCL’s Rs 3,570 crore offer for the Rs 9,234 crore of debt held by nine public sector lenders. According to a bid document sent to Asset Reconstruction Companies (ARCs), lenders led by invited expressions of interest on October 10 and scheduled an auction on October 27. NARCL will have the right to match the successful bid and take over the debt.

In July 2021, the resolution plan for the Suraksha Group was submitted to the tribunal for approval by Anuj Jain, the interim resolution professional (IRP) of . According to stock exchange filings, the tribunal has postponed the hearing on the case nearly 80 times since then. A real estate consultant said to ET, “The judicial delay of over a year to get the plan approved indicates the plight of homebuyers who have already waited for over 10 years to get possession of their homes.”

According to NARCL’s offer, lenders would receive a 39 per cent recovery. The NARCL’s offer would amount to Rs 9,345 crore if the same offer of 39 per cent recovery is provided to all claimants. The IRP has admitted claims totalling Rs 24,211 crore.

Lenders said to ET that the NARCL offer is appealing compared to the successful bidder. A lender said, “We will receive 15 per cent of the consideration amount upfront, and we will not have to wait until the court approves the plan.”

Source link

- Advertisement -spot_img

More articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article